tante10h ago

"Microsoft 365 has more than 450 million paid commercial seats. After roughly two years on the market, Copilot has converted approximately 15 million of them into paying users. That's a 3.3% conversion rate, at $30 per user per month, generating roughly $5.4 billion in annual revenue. That's less than what Microsoft spent on infrastructure in a single quarter (3)."

None of the numbers make economic sense.

https://finance.yahoo.com/markets/stocks/articles/nadella-paid-650m-recruit-ai-170000361.html?guccounter=1

Nadella paid $650M to recruit his AI chief. After 2 years he's quietly pushing him aside — these brutal numbers are why

Nadella just reshuffled his entire AI leadership. Here's what that means for your portfolio.

Yahoo Finance
Show threadThe Casual Critic9h ago

@tante and this is despite CoPilot infesting every MS Office product like a rash.

Maybe the business model will turn out to be that they'll force users to pay extra to get rid of CoPilot.

Show threadMostlyBlindGamer9h ago
@thecasualcritic @tante I had to jump through a few hoops to lower the cost of my Microsoft 365 subscription and remove Copilot. I could see them making that impossible instead of hard and claiming me as a happy customer.
Show threadThe Casual Critic
@MostlyBlindGamer @tante
Oh yes. You can already see that in how AI gets in the way of user experience everywhere. I'm sure I'm a CoPilot 'user' because the top search result on Bing is now only available in an AI box, and every document now has a 'helpful summary' i can't switch off.
4:13pmWeb